The parent company of world leading automaker Mercedes Benz, Daimler AG (DAIG) has made public its plan to invest in upcoming initial public offering of China based electric vehicle battery manufacturer Farasis Energy.
The decade old company is looking forward to go public later in the year, from where it expects to fetch 3.4 billion Yuan ($479 million) from its initial public offering which will give the EV maker a market valuation of 30 billion Yuan ($4.2 billion).
Apart from investing in the EV maker, Daimler is seeking increased supply of EV batteries from the company as it’s also scaling up production of its electric vehicles.
Insider sources said the plan is not yet finalized hence any necessary changes can be incorporated, the size of this potential investment is also yet to be established.
Last week, Farasis received an approval from Chinese regulator to raise 3.44 billion yuan in an initial public offering on Star board. According to the regulatory filing, Farasis will be having its IPO in the current quarter.
The company will then direct the proceeds into its lithium-ion battery project and top up its working capital.